Boeing will not decide until next year whether to launch a new “middle of the market” aircraft to bridge the gap between its biggest narrow body passenger jet and the 787 Dreamliner twin aisle.
Dennis Muilenburg, Boeing chief executive, told the Financial Times that the US aerospace group had to ensure that there was a “solid” business case before pressing ahead with the long-mooted aircraft.

StockMarketNews.Today – “We don’t feel rushed to make a decision,” he said in an interview ahead of the Farnborough air show this week. “I would anticipate to make a launch decision next year.” A decision in 2019 would “be consistent with a 2025 entry into service,” he added.

Boeing has for several years been mulling the launch of a new aircraft that would replace the discontinued 757 jet, seating between 220-270 passengers and with a range of about 5,000 nautical miles. The company has identified a market for up to 5,000 aircraft in this segment and, after initially targeting an entry into service range of between 2024 and 2025, the group has now settled on a date of 2025.

However, the delay in establishing the business case for the aircraft is prompting some to question whether Boeing will in the end launch the aircraft. “The problem is the longer they delay [the decision] the more tenuous the business case becomes,” said Scott Hamilton of the Leeham aviation consultancy.

Mr Muilenburg insisted that Boeing had established that there was demand for a new, clean sheet aircraft. “It’s a market that cannot be directly addressed with derivatives of existing airplanes,” he said.

This would not be an aircraft that pushes the limits of technology, he said, perhaps in reference to the difficulties experienced in building the 787 Dreamliner which was the world’s first jet to be more than 50 per cent composite materials.

“It is going to be more about the production system of the future trying to push the technology on the aeroplane,” he said.

As part of the group’s work on the business case, Boeing would examine where to build the new aircraft, he added. Producing it in Boeing’s original factory in Washington state was not a given, he suggested. The final location would depend on cost-competitiveness, access to talent and the supply chain. “We haven’t made a decision yet on geography so we are keeping our options open,” he said.

Boeing is reported to be considering South Carolina — where it builds the 787 — as well as Washington for its next aircraft programme. Mr Muilenburg suggested that certain elements of a new aircraft programme could also be done in Brazil after Boeing’s recent deal to acquire the commercial jet business of Embraer is finalised.

Boeing Co Company Profile:

The Boeing Company is an aerospace company. The Company’s segments include Commercial Airplanes; Defense, Space & Security (BDS), such as Boeing Military Aircraft (BMA), Network & Space Systems (N&SS) and Global Services & Support (GS&S), and Boeing Capital (BCC).

The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides related support services, to the commercial airline industry. The Commercial Airplanes segment also produces commercial aircraft and offers a family of commercial jetliners.

The BDS segment’s operations involve research, development, production, modification and support of the products and related systems. The BMA segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems.

The BCC segment’s portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease and investments.